A Ron Wants to Buy All of the Stock of Quagmar

question 89

Essay

a. Ron wants to buy all of the stock of Quagmar, Inc. He approaches the officers and directors and offers to pay them $200 per share for each of the shares they hold. The officers and directors agree and then convince the majority of shareholders to sell their stock for $100 per share. Do the other stockholders have a cause of action against the officers and directors? Explain.
b. Arthur, Bob, and Clark are three of the five board members of Krescent, Inc. One day they meet by chance for breakfast and decide to transact some corporate business while they are all together. If they decide to declare a dividend and to purchase another building for the corporation at this meeting, will their actions be binding on the corporation? Explain.

Understand the role and authority of labour relations boards including certification of unions and holding representation votes.

Comprehend employment laws related to workplace treatment and employee rights, including constructive dismissal and discrimination.

Identify laws protecting employees from workplace harassment and discrimination.

Understand the scope of employment contract law including aspects of the employment contract.

---

Definitions:

Functional Currency

The currency of the primary economic environment in which the entity operates, typically the currency in which an entity primarily generates and expends cash.

Foreign Subsidiary

A company owned or controlled by another company that is based in another country.

Amortization Expense

The systematic and gradual charge to expense of the cost of an intangible asset over its useful life.

Functional Currency

A redefined definition: The currency that a business uses for most of its transactions, reporting, and financial statements.